Believe it or not bankruptcy together with some other smart moves can Increase Your Credit Score. Everyone wants good credit and for good reason. To get a credit card, a loan or good interest rates on loans you must have good credit. Bad marks on your credit report are negative reminders of your past financial mistakes. If you have negative comments on your credit report don’t worry all is not lost. There are some things you can do to increase your credit rating.
Submit A Dispute To The Credit Bureaus
The Fair Credit Reporting Act provides you, among other things, with the right to an accurate credit report. Because of this you have the corresponding right to dispute negative entries made to your credit report. To dispute an entry, send a letter to the credit bureaus describing the error and provide any proof you may have. Upon receiving your letter the Credit bureaus will conduct an investigation. If the bureaus find that the entry is incorrect, the entry will be removed from your credit history. On the other hand, if the information is accurate and verifiable the entry will remain on your credit report.
This is exactly what many of the so called credit repair agencies do. Among other this the hope is that the creditor never responds to the inquiry and this silence results in the negative credit comment being removed.
Bankruptcy Removes The Creditors Debt
When you file bankruptcy the debt that was being reported on your credit bureau no longer exists. This is because the debt is forgive in bankruptcy. Sometimes the creditor fails to show that the debts been forgiven and it reports as unpaid on your credit report. In this situation you need to challenge the debt directly with the credit bureau. Provided the chapter 7 eliminated the debt it will be reported as discharged nothing owed.
Negotiate Changes To Your Credit Report
In the event your dispute fails you can always negotiate directly with the creditor who made the negative entry. If you haven’t filed bankruptcy and had the debt removed you can make a pay for delete offer. A pay for delete offer is a technique you can use with delinquent or past due, accounts. In this type of negotiation, you will likely have to agree to pay the account in exchange for the negative details being removed from your credit history.
You can also appeal to a creditor’s good nature. You can send a letter explaining why you were late, how you’ve since been a good paying customer, and ask that the negative entry be deleted. Some creditors will make these deletions if you talk to the right person. Sometimes if you explain the bad debt is the result of divorce or loss of your job this might help. Other debtors might find that its better to work with you then it is to face the prospect of you filing a chapter 7 or chapter 13 bankruptcy.
Allow Time To Heal Your Credit Report
If all your efforts fail, your only choice is to wait for the negative items to fall off your credit report. Fortunately, the law only allows most negative information to be reported for seven (7) years. Negative information affects your credit score less as it gets older and as you replace it with positive information.
In the event that you filed a bankruptcy certain creditors may be more inclined to make loans to you after the case closes. Sometimes they do this because they know you cant file again for eight years and that all of your debt is gone. Once you get new credit its important that you take care to grow it. Maintaining good credit practices over a long period of time is the best way to increase your credit score.
Creek County Attorneys Near You
Nothing will magically and drastically improve your credit rating. But try the things mentioned above while maintaining good credit practices and see if you can increase your credit score. If you need additional guidance feel free to contact the Creek County attorneys at Kania Law Office at 918.209-3709.